Ministry of Finance: Alitalia was selected to fly government employees abroad

The decision is widely regarded as an embarrassment for El Al which had an effective monopoly over air transportation services for Government employees traveling abroad on official business
 
Accountant General Dr. Yaron Zalika issued last week a statement noting that the Ministry of Finance selected Italy’s national air carrier Alitalia as the airline for public sector employees traveling abroad on official Government business.
 
The decision is widely regarded as an embarrassment for El Al which had an effective monopoly over air transportation services for Government employees traveling abroad on official business.
 
The Finance Ministry added that the framework agreement with Alitalia is a direct continuation of its policy to enter into travel agreements with the main airlines via which state officials travel, in order to reduce overall government spending on foreign travel.
 
Mr. Avi Dor, director of the Government Procurements Administration, said after Zalika's statement was issued that an agreement had been signed following extensive negotiations between Alitalia representatives and the Government.
 
Dor noted that the agreement will save the government at least NIS 10 million annually in air fares for Government employees traveling overseas.
 
It is understood that within the framework of the agreement Alitalia, had agreed to provide the Government, with discounts as well as numerous benefits such as flight rescheduling free of charge, a special tariff for excess baggage weight and other services.
 
The agreement with Alitalia is valid for a year with an extension option for a further two years.
The decision was strongly attacked by Israel Tourist & Travel Agents Association arguing that the decision not only didn't make any economic sense and would waste public money, but was also "insensitive to feelings of the public."